- Mt. Gox trustee to start Bitcoin and Bitcoin Cash repayments in July 2024 to creditors who have been waiting for over 10 years
- Mt. Gox transferred 141,686 BTC worth $9.62 billion into a new wallet in May 2023, part of the repayment process
- Mt. Gox collapsed in 2014 after losing 850,000 BTC worth over $519 billion at the time, causing Bitcoin’s price to crash below $500
Mt. Gox, the now-defunct cryptocurrency exchange that lost 850,000 Bitcoin in investor funds in 2014, will finally start repaying its users in July 2024 after over 10 years of waiting. The rehabilitation trustee will begin processing repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) to creditors who lost their funds when Mt. Gox collapsed.
Mt. Gox’s Collapse in 2014
Mt. Gox was one of the earliest and largest cryptocurrency exchanges, once facilitating more than 70% of all crypto trades. In 2014, Mt. Gox went offline after a security breach resulted in the loss of over 850,000 BTC worth over $519 billion at today’s prices. This led to Bitcoin’s price falling to a local low of $420 shortly after. Mt. Gox was reportedly hacked multiple times between 2011 and 2014 before its collapse.
The Repayment Plan
Mt. Gox’s rehabilitation trustee, Nobuaki Kobayashi, has been preparing to repay the exchange’s creditors, who are owed over $94 billion worth of Bitcoin. On May 28, 2022, Mt. Gox transferred 141,686 BTC worth $9.62 billion to a new wallet, consolidating funds in preparation for repayments. The current deadline for repayments is July 2024, after previous delays pushed back the initial October 2023 target.
Creditors’ Long Wait
Over 127,000 Mt. Gox creditors have been waiting for over 10 years to recover their lost funds. The exchange’s users have followed repayment plans closely, anticipating finally being reimbursed for their missing BTC. However, the trustee has asked for continued patience, saying the order of repayments will depend on the respective exchanges and information processing.
Conclusion
After a decade of waiting, July 2024 may finally bring some closure for Mt. Gox creditors. However, the repayment process may still face further delays. Mt. Gox users will have to wait a little longer to see how the exchange’s saga comes to an end.
